British retail sales surged again in May to hit the highest level of annual growth in almost four years, official data published today showed.
National Statistics said retail sales rose 0.8 per cent in May to stand 6.4 per cent higher on the year, the best annual growth rate seen since July 1997. The figures were much stronger than economists had expected.
Lively sales growth was driven across the board, from the food sector to clothing and footwear.
NS also revised up its estimate of overall sales growth volumes in March from unchanged to 0.3 per cent .
The figures are likely to raise fresh concerns British consumer demand may be too strong and force retail prices higher later this year.
This could worry Britain's central bank, which has been cutting interest rates to help shelter the economy from the world slowdown.
After the inflation figures this week, this is further going to confirm speculation that rate cuts have come to an end, said Crédit Agricole economist Mr Michael Metcalfe.
In the latest three months compared with the previous three - which irons out monthly distortions - sales jumped 1.5 per cent. They also rose 5.8 per cent from the corresponding three months a year ago, a record high from August 1997.